Crypto analysis platform Matrixport has reported that Bitcoin (BTC) is approaching oversold territory based on technical indicators, with levels historically paving the way for price recoveries. The current market decline has pushed Bitcoin into risk territory, and on-chain data suggests these levels could be attractive for 'buying the dip.' However, analysts emphasize that while short-term recoveries are possible, a sustained upward trend requires new macroeconomic supporting factors, which are currently lacking in the global economic environment.
From a technical perspective, indicators like the RSI are slowly showing signs of stabilization and recovery. Matrixport cautions that further liquidation and a period of rebalancing in spot trading may be necessary to confirm a true market bottom. Investors are advised to remain cautious and hold long-term positions until clear bottom formation signals emerge.
In a related market assessment, Matrixport highlighted the 21-week moving average (MA21) as a crucial reference point for understanding Bitcoin's long-term trends. The company stated that the recent price drop does not signify the end of the uptrend, and such pullbacks can be viewed as a 'healthy correction process.' The MA21 has historically helped investors reassess positions during volatile periods, and Matrixport recommends focusing on this time-tested indicator over short-term fluctuations for long-term success, especially for institutional investors.
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